Super reform "takes away the right to be tax exempt"BY ANDREW MCKEAN | TUESDAY, 28 MAR 2023 12:09PMThe potential super shake-up, which includes contentious provisions on pension payments and unrealised capital gains tax, has drawn criticism from a top AFSL. Related News |
Editor's Choice
Australian Retirement Trust people chief to depart
Australian Retirement Trust has confirmed the departure of chief people officer Helen Jackson, who will leave at the end of the financial year.
SSGA loses $2.4bn in two months
State Street Global Advisors (SSGA) suffered $2.4 billion in net outflows over the last two months of 2023, the majority of which hit its Australian and international equities products.
AFCA seeks industry feedback on approaches
The financial complaints authority is asking the industry for feedback on how it approaches issues and reaches decisions.
Apex, ACA partner to broaden client services
Apex Group and ACA Group have formed a partnership to offer their clients a wider range of services.
Further Reading
Sponsored by | Know the facts about lifetime annuitiesSaving for a happy retirement is Australia's #1 financial goal. Learn how LifeIncome can deliver more income, certainty, & choice. |
Products
Featured Profile
Phil Usher
CHIEF EXECUTIVE OFFICER
FIRST NATIONS FOUNDATION
FIRST NATIONS FOUNDATION
Taking a gamble to steady the ship as chief executive of First Nations Foundation, Phil Usher has turned it into a more secure, self sustaining entity, far better equipped to empower First Nations people to achieve financial prosperity. Andrew McKean writes.
Petty complaints do the financial services industry no favours.
Anyone who started a pension after 1 July 2017 has a transfer balance cap well below $3M. Yes, it's possible that earnings growth net of draw-downs will have taken the pension fund balance above $3M, but this would be rare.
By bipartisan (and, presumably, community) agreement, the TBC is enough to fund a reasonable retirement income, such that there is no need for tax exemption above that balance. Since the TBC will remain below $3M for two or three election cycles, there is plenty of opportunity to review the relationship in future.
Meanwhile, the additional tax will effectively apply to earnings on assets well above the TBC, so the pension draw-down point is a red herring.
Meanwhile, is there a serious financial advisor who thinks that it is OK to hold a single illiquid asset in super with no liquid assets (in or out of super) available to meet expected and unexpected financial commitments? After all, as with Div 293, the additional tax can be paid from non-super money.